Vatican Posts Record Deficit of $63 Million

VATICAN CITY — The Vatican posted a record deficit of $63.8 million in 1987, prompting an appeal by church officials for increased contributions from Roman Catholics to enable the Holy See to “adequately carry out its pastoral mission.”

It was the ninth year in a row that the administrative center for the world’s 850 million Catholics operated at a loss.

The deficit will be covered by $50 million from “Peter’s Pence,” the annual offering from Catholics to the Pope, and the rest by reserve funds, a Vatican statement said.

The Vatican said its 1987 deficit was 74.6 billion Italian lire, down from a record 76.6 billion lire a year earlier. Using the 1987 end-of-year exchange rate, the church said the 1987 figure equaled $63.8 million.

While the 1987 deficit is the second largest on Vatican ledgers, it actually works out to be the largest ever in dollar terms because of swings in the exchange rate.

Magnified in Dollars

Because the exchange rate used in the Vatican calculations was one of the lower ones for 1987, the extent of the deficit is magnified in dollars.

The Holy See said it expects its 1988 shortfall to be its largest ever--climbing 3% above the 1987 figure--even though it placed strict controls on spending and has urged more contributions.

The statement said that covering the 1988 deficit will be “precarious” because reserve funds had been used to pay 1987 expenses.

The budget statement was issued by the 12-member Council of Cardinals for the Study of the Organization and Economic Problems of the Holy See at the conclusion of three days of meetings.

The budget covers expenses for the church’s central administration, Vatican Radio, diplomatic missions and the Vatican newspaper, L’Osservatore Romano.

Salaries Largest Expense

The largest 1987 expense was salaries for the Vatican’s 2,325 employees and pension payments to its 880 retirees, which combined to make up 54% of the budget, compared to 51% in 1986. The statement said the increase was due to a reorganization of personnel and salary hikes.

The budget does not include the Vatican bank, nor does it include the costs of Pope John Paul II’s travels, which the Vatican says are paid for by local churches.

The Vatican’s biggest source of income came from investments such as bank accounts, stocks and bonds and property, which brought in $38.1 million, up nearly 7% from 1986.